Equity Analysis: Stock Buybacks and the P/E ratio
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Equity Analysis: Stock Buybacks and the P/E ratio

Intuition Publishing
Updated Sep 24, 2020

A stock buyback is a repurchase by a company of its own shares through a tender offer or the purchase of shares on the open market. Buybacks are often done to improve financial ratios and/or increase the share price. Here we explore the motivations behind buybacks and their effect on key financial ratios.